Here\u2019s when you should liquidate inventory <\/h3>\n\n\n\n
Inventory liquidation can be very effective, but it\u2019s not a one-size-fits-all solution. Rather, it is an approach that should be used sparingly, and only in situations where it\u2019s really necessary. Here are some of the common and justifiable reasons for ecommerce stores to liquidate their inventory. <\/p>\n\n\n\n
Overstocking or deadstock<\/em> <\/h4>\n\n\n\nSometimes, ecommerce business will end up with more inventory than they can sell, or inventory units that are (for whatever reason) unsellable. This can be due to: <\/p>\n\n\n\n
\n- Supply chain issues<\/strong><\/a> that delay inventory\u2019s arrival, at which point demand has decreased <\/li>\n<\/ul>\n\n\n\n
\n- Inaccurate demand forecasting<\/strong>, which leads a business to overestimate demand levels for a particular product <\/li>\n<\/ul>\n\n\n\n
\n- Inaccurate inventory data<\/strong>, which leads a business to believe they have less of a product than they actually do <\/li>\n<\/ul>\n\n\n\n
\n- Inventory obsoletion<\/strong>, in which a product expires or becomes obsolete before it can be sold <\/li>\n<\/ul>\n\n\n\n
Regardless of the cause, overstocking<\/a> often calls for liquidation, as you\u2019re paying to store inventory that you\u2019re unable to sell (and keeping capital tied up in stagnant inventory). Getting rid of excess stock and deadstock<\/a> allows you to make room for new inventory with higher demand while freeing up cash to invest elsewhere in your business. <\/p>\n\n\n\nProduct lifecycle changes<\/em> <\/h4>\n\n\n\nAs the lifecycle of a product approaches an end, you may notice a decline in demand. This means you\u2019ll end up with products that are incredibly slow to sell. <\/p>\n\n\n\n
By liquidating these items, you can free up capital to invest in newer product models and variations, which are more likely to drive sales. <\/p>\n\n\n\n
Seasonal demand changes<\/em> <\/h4>\n\n\n\nSeasonal merchandise can take up valuable storage space while incurring high inventory carrying costs<\/a>. Liquidation sales are a great way to get rid of off-season products and free up room for new and relevant items. <\/p>\n\n\n\nFinancial pressure<\/em> <\/h4>\n\n\n\nFinally, some businesses may have no choice but to liquidate stock if they\u2019re experiencing financial pressure. When you have capital tied up in unsold inventory while still paying to store said inventory, it can squeeze your profit margins. Liquidation is one of the fastest ways to improve cash flow and ease financial strain. <\/p>\n\n\n\n
Inventory liquidation methods and effective strategies <\/h2>\n\n\n\n
Once you\u2019ve decided that liquidation is the best option for your business, you\u2019ll need to choose a method for liquidating your inventory. There are a few different liquidation strategies that brands use depending on their customer base and business model. <\/p>\n\n\n\n
Discount sales <\/h3>\n\n\n\n
One of the most popular ways to liquidate inventory is by offering discounts. For example, you could run a flash sale<\/a> with deep markdowns<\/a> to encourage customers to buy your products before time runs out. This is ideal for items that are going out of season soon or approaching the end of their lifecycle. <\/p>\n\n\n\nProduct bundling<\/a> is another effective method, as it allows you to get rid of excess inventory by bundling the surplus items with faster-moving items. You could take this approach with items that people are likely to need along with the fast-moving products. <\/p>\n\n\n\nFor instance, if you\u2019re trying to liquidate headphones, you could bundle them with your best-selling computer. <\/p>\n\n\n\n
Alternatively, you could bundle the same products to introduce bulk discount offers so that people buy more items at a time, allowing you to quickly get rid of excess stock. This is especially effective for products that people might want to buy in multiples, such as home supplies. <\/p>\n\n\n\n
\n\u201cThe thing I love most about ShipBob\u2019s dashboard is the product bundling capability. I can\u2019t explain how many conversations we\u2019ve had internally trying to figure our bundling before we worked with ShipBob. You would not believe how hard it was to configure bundles so that the customer sees it as one unit, but it would get split into different picks when it got to the old 3PL\u2019s fulfilment centre. <\/em><\/p>\n\n\n\nBut with ShipBob, it\u2019s so simple. You log on to your dashboard, put whatever products you want in a bundle, and it\u2019s created as its own \u201cprimary item\u201d on Shopify with the composite products as sub-items. When an order comes through, it triggers the system and gets fulfilled seamlessly. It’s super easy \u2013 that alone would have been enough to make me want to switch to ShipBob!\u201d<\/em><\/p>\n\n\n\nStuart Jones, Co-Founder of Canvas<\/a> <\/p>\n<\/blockquote>\n\n\n\nOnline marketplaces and auction platforms <\/h3>\n\n\n\n
If you\u2019re not getting enough sales on your existing sales channels, you can make use of third-party platforms to leverage their existing customer base. Marketplaces<\/a> like Amazon and online auction platforms like eBay help you tap into a massive audience that\u2019s seeking great deals. Offer your goods at a lower price to appeal to potential buyers so you can quickly get rid of unwanted inventory. <\/p>\n\n\n\nDirect sales to liquidators <\/h3>\n\n\n\n
Some companies specialize in liquidation, providing an effective way for businesses to get rid of excess inventory quickly and efficiently. These liquidation companies will buy your surplus stock in bulk, so you don\u2019t have to deal with the hassle of running and managing a sale. However, it\u2019s important to carefully vet the company you\u2019re working with to make sure that you\u2019re getting a reasonable deal. <\/p>\n\n\n\n
Bulk selling to retailers <\/h3>\n\n\n\n
Alternatively, there are retail businesses that will purchase your excess stock for resale. You may have to negotiate a deal and sell your inventory at a discounted price (since the retailers will have to make a profit), but decreased profit margins are still better than throwing the goods away (which delivers zero ROI). <\/p>\n\n\n\n
B2B liquidation channels <\/h3>\n\n\n\n
Some brands opt to liquidate inventory by selling excess goods to other businesses, which will typically use the products themselves. <\/p>\n\n\n\n
You can either find a business to sell to directly, or use B2B<\/a> liquidation channels and wholesale ecommerce<\/a> platforms that will connect you with bulk inventory buyers such as liquidators, retailers, and wholesalers such as Liquidation.com<\/a> and Overstock Trader.<\/a> <\/p>\n\n\n\nDepending on the platform, you may either list your inventory for sale or host a liquidation auction to attract potential buyers. Either way, it is generally quicker and simpler to offload inventory via a B2B transaction than waiting for individual consumers to purchase individual units on your ecommerce platform<\/a>. <\/p>\n\n\n\nExpert tips for liquidating ecommerce inventory <\/h2>\n\n\n\n
No matter which way you liquidate inventory, there are some best practices that help make it easier. Here are some strategies for simplifying and optimising the inventory liquidation process. <\/p>\n\n\n\n
Time your liquidation efforts <\/h3>\n\n\n\n
Timing is the key to successful inventory liquidation. If there\u2019s simply no demand for your product, it won\u2019t matter that you\u2019re selling it at a deep discount \u2013 you may still end up with unsold and devalued inventory, making it even harder to generate profits from them. So be strategic about when you\u2019re holding a liquidation sale, so it doesn\u2019t clash with changing market trends and consumer behaviour.<\/a> <\/p>\n\n\n\nTiming your liquidation efforts requires accurate demand forecasting,<\/a> as accurate forecasting enables you to offload inventory before demand dries up completely. Look for patterns in customer interest and seasonal trends so you can see when demand starts to decline, and run discounts or sales before then. <\/p>\n\n\n\nFor instance, say your brand sells winter clothing. Since demand for winter clothing starts to decline as the weather warms up, you may want to start offering discounts on winter clothes before winter is over. That way, you can at least start to liquidate inventory while there\u2019s still interest in it. <\/p>\n\n\n\n
Plan marketing and promotion ahead of time <\/h3>\n\n\n\n
Simply running an attractive sale on your website may not be enough. You will also need to raise awareness about the sale and pitch it to the right shoppers so that you can attract and convert more customers. <\/p>\n\n\n\n
Invest in various marketing strategies and ecommerce promotions<\/a> to spread the word about your liquidation sale. Notify your email subscribers, create enticing social media posts, and retarget existing customers with strategic ads on social media platforms. Make sure your customers know when the sale is taking place and what types of products they can expect to buy at a discount. This will build anticipation for the sale to go live, preparing your customers to make a purchase long before the discounts are available. <\/p>\n\n\n\nPlanning your promotional efforts ahead of time will help you ensure that your liquidation strategy immediately has an impact as soon as it goes live. This will also help speed up the liquidation process, allowing you to save on storage costs and improve cash flow as quickly as possible. <\/p>\n\n\n\n
Monitor and apply findings to future liquidations <\/h3>\n\n\n\n
The most effective way to manage your inventory liquidation is by reducing the need for liquidation in the first place. <\/p>\n\n\n\n
Monitor how your existing liquidation strategy is working so you can adjust your inventory management<\/a> and plan your procurement more strategically to avoid overstocking altogether. Performing regular inventory audits<\/a> will also help you identify inventory buildup and address them before it goes out of control. <\/p>\n\n\n\nAdditionally, the insights gained from analising your current efforts will help improve any future liquidations. Perhaps you discovered that selling your inventory in bulk to another business was more effective than running a flash sale on your DTC website. In this case, you might want to focus only on B2B channels for your future liquidations. <\/p>\n\n\n\n
How ShipBob turns inventory management into an asset <\/h2>\n\n\n\n
Ideally, your business won\u2019t have to resort to liquidation. The goal is to always have enough of the right inventory on hand to meet demand \u2013 and to achieve that balance, you\u2019ll need effective inventory management. <\/p>\n\n\n\n
That\u2019s where a supply chain partner like ShipBob can help. With the right combination of technology, best practices, and expertise, ShipBob\u2019s solutions make it easier for brands to manage their inventory and avoid liquidation scenarios. <\/p>\n\n\n\n
Industry-leading inventory analytics <\/h3>\n\n\n\n
ShipBob\u2019s inventory management software provides you with the real-time insights you need to optimise your inventory levels, minimise costs, and stay stocked. Through ShipBob\u2019s dashboard, you can: <\/p>\n\n\n\n
\n- View and track real-time inventory levels<\/a> across channels and locations, so that you always know exactly how much inventory you have on-hand<\/a>\u00a0<\/li>\n\n\n\n
- Assess SKU velocity and inventory turnover<\/a> to identify fast- and slow-moving products, and pinpoint which products to reorder (to avoid overstocking products that won\u2019t sell)\u00a0\u00a0<\/li>\n\n\n\n
- Monitor storage cost per unit to quickly identify when liquidation is needed\u00a0<\/li>\n<\/ul>\n\n\n\n
![\"\"](\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool.png?w=1280px\")
<\/figure>\n<\/div>\n\n\n![\"\"](\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/07\/153fc616652a28253ff09c4b1cb5d77b.png?w=1280px\")
<\/figure>\n<\/div>\n\n\n![\"\"](\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/image-1-1.png?w=1280px\")
<\/figure>\n<\/div>\n\n\n\n\u201cI can’t say enough about ShipBob\u2019s software and reporting capabilities. It really has made things easy for us to look at the data and make better decisions. Not all partners are set up that way \u2013 oftentimes when you\u2019re using other providers\u2019 technology, you have to pull the data yourself, and there’s a lot of work to be done on the back end. I often brag about ShipBob\u2019s software. We’ve actually shown it off to other software partners to say, \u2018We want your system to tell us the things that ShipBob\u2019s software tells us.\u2019 You can tell that ShipBob\u2019s platform was built with the mindset of making their customers\u2019 lives easier.\u201d<\/em><\/p>\n\n\n\nRyan Steffenson, Senior Manager, Channel Operations at Tonies<\/a> <\/p>\n<\/blockquote>\n\n\n\nDemand forecasting data and tools <\/h3>\n\n\n\n
ShipBob also offers merchants the data and analytics they need to improve their demand forecasting, and subsequently avoid liquidation scenarios. <\/p>\n\n\n\n
Using real order data tracked over time in ShipBob\u2019s dashboard, you can easily identify trends, patterns, and other insights into demand, and plan your procurement accordingly. That way, you know exactly how much of which SKU to reorder to ensure that you have enough inventory to meet demand, but not so much that you\u2019ll end up with ghost inventory<\/a> or deadstock you need to liquidate. <\/p>\n\n\n\nYou can even set up automatic reorder notifications<\/a> in ShipBob\u2019s dashboard, and receive a notification whenever a SKU\u2019s stock level hits a certain threshold. This enables you to time replenishment correctly, so you neither stock out nor overstock your inventory. \u00a0<\/p>\n\n\n\nDistributed inventory across a global network <\/h3>\n\n\n\n
With dozens of fulfilment centres across the US, UK, mainland Europe, Australia, and Canada, ShipBob enables you to place your inventory in or near the locations where that inventory is in highest demand<\/a>. This way, you can send inventory to the regions or areas where there\u2019s a market for it and avoid resorting to liquidation. <\/p>\n\n\n\nShipBob\u2019s ideal Inventory Distribution Tool<\/a> even calculates the most optimal split of inventory across ShipBob\u2019s network which will minimise your shipping costs and times to deliver a better customer experience, no matter where your shoppers live. \u00a0<\/p>\n\n\n\n![\"\"](\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/image-1-2.png?w=1280px\")
<\/figure>\n<\/div>\n\n\nSimplified outsourced fulfilment and shipping <\/h3>\n\n\n\n
Whether you sell inventory or liquidate it, you\u2019ll need a strategy for getting inventory where it needs to go. ShipBob\u2019s outsourced fulfilment solutions help you manage the logistics of storing, fulfilling, and shipping out your products so you can keep inventory moving through your supply chain. <\/p>\n\n\n\n
ShipBob takes care of the entire order fulfilment<\/a> process, so you don\u2019t have to lease warehouse space, receive and stow inventory, or pick, pack, and ship orders yourself. Even if there\u2019s a sudden spike in sales due to liquidation, ShipBob can flex with your order volume and still fulfil your orders quickly and seamlessly. <\/p>\n\n\n\n\n\u201cWe’ve scaled so much, and there have been zero hiccups in fulfilment with ShipBob. I don’t think even as we keep scaling in the years to come that there will be any hiccups there. That cannot always be said of brands that run their own warehouse. Running your own warehouse, you have to go out and hire very experienced people, invest in equipment, build in automation \u2013 and often, you’re wasting a lot of time, energy, resources, and human capital for a sub-par result. Why do that when a partner like ShipBob exists, and makes fulfilment so easy at a fair price?\u201d<\/em><\/p>\n\n\n\nTyler McCann, Co-Founder of Taste Salud<\/a> <\/p>\n<\/blockquote>\n\n\n\nEffective returns handling <\/h3>\n\n\n\n
ShipBob can manage your customer returns<\/a>, including those for liquidated items, while minimising complications and costs. You can set return preferences for liquidated products so that they\u2019re quarantined or discarded appropriately instead of being put back on the shelves. That way, you won\u2019t have to deal with the hassle of liquidating them all over again.\u00a0<\/p>\n\n\n\nFor more information on how ShipBob can help you manage inventory and avoid inventory liquidation, click the button below to get in touch with an expert. <\/p>\n\n\n\n
\nSpeak to a fulfilment expert<\/a><\/div>\n<\/div>\n\n\n\nLiquidating inventory FAQs <\/h2>\n\n\n\n
Below are answers to the most commonly asked questions about liquidating inventory. <\/p>\n\n\n\n
When is it advised to liquidate inventory?\u00a0<\/h4>![](\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\")
<\/div><\/div>\n\nIt\u2019s advisable to liquidate inventory when you have excess stock of inventory that\u2019s no longer in demand or approaching the end of its shelf life. Seasonal changes in demand and financial issues are other justifiable reasons for liquidating inventory.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n
How can ShipBob help with inventory liquidation?\u00a0<\/h4><\/div><\/div>\n\nShipBob provides real-time inventory visibility and comprehensive inventory analytics to help you plan your procurement to avoid overstocking and minimise the need for liquidation. Additionally, ShipBob\u2019s outsourced fulfilment service helps you simplify the logistics of moving your liquidated inventory out of the warehouse.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n
What are the best channels for liquidating excess or obsolete inventory?\u00a0<\/h4><\/div><\/div>\n\nSome of the best channels for liquidating excess or obsolete inventory<\/a> include your ecommerce website (though heavy discounts and sales), retail channels (i.e., selling inventory to retailers, who them sell them through their network), or B2B channels (either directly to another business or through third-party platforms such as\u00a0Liquidation.com<\/a> and Overstock Trader)<\/a>.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\nCan inventory liquidation increase profitability for an ecommerce business?\u00a0<\/h4><\/div><\/div>\n\nLiquidation can increase profitability by freeing up capital to re-invest in newer, more in-demand products and clearing up valuable storage space to store the inventory.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"
Learn what inventory liquidation is, some common liquidation strategies, and best practices for liquidating your ecommerce inventory.<\/p>\n","protected":false},"author":194,"featured_media":15918,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[8],"class_list":["post-15916","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-inventory"],"yoast_head":"\n
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- \n
- Inaccurate demand forecasting<\/strong>, which leads a business to overestimate demand levels for a particular product <\/li>\n<\/ul>\n\n\n\n
- \n
- Inaccurate inventory data<\/strong>, which leads a business to believe they have less of a product than they actually do <\/li>\n<\/ul>\n\n\n\n
- \n
- Inventory obsoletion<\/strong>, in which a product expires or becomes obsolete before it can be sold <\/li>\n<\/ul>\n\n\n\n
Regardless of the cause, overstocking<\/a> often calls for liquidation, as you\u2019re paying to store inventory that you\u2019re unable to sell (and keeping capital tied up in stagnant inventory). Getting rid of excess stock and deadstock<\/a> allows you to make room for new inventory with higher demand while freeing up cash to invest elsewhere in your business. <\/p>\n\n\n\n
Product lifecycle changes<\/em> <\/h4>\n\n\n\n
As the lifecycle of a product approaches an end, you may notice a decline in demand. This means you\u2019ll end up with products that are incredibly slow to sell. <\/p>\n\n\n\n
By liquidating these items, you can free up capital to invest in newer product models and variations, which are more likely to drive sales. <\/p>\n\n\n\n
Seasonal demand changes<\/em> <\/h4>\n\n\n\n
Seasonal merchandise can take up valuable storage space while incurring high inventory carrying costs<\/a>. Liquidation sales are a great way to get rid of off-season products and free up room for new and relevant items. <\/p>\n\n\n\n
Financial pressure<\/em> <\/h4>\n\n\n\n
Finally, some businesses may have no choice but to liquidate stock if they\u2019re experiencing financial pressure. When you have capital tied up in unsold inventory while still paying to store said inventory, it can squeeze your profit margins. Liquidation is one of the fastest ways to improve cash flow and ease financial strain. <\/p>\n\n\n\n
Inventory liquidation methods and effective strategies <\/h2>\n\n\n\n
Once you\u2019ve decided that liquidation is the best option for your business, you\u2019ll need to choose a method for liquidating your inventory. There are a few different liquidation strategies that brands use depending on their customer base and business model. <\/p>\n\n\n\n
Discount sales <\/h3>\n\n\n\n
One of the most popular ways to liquidate inventory is by offering discounts. For example, you could run a flash sale<\/a> with deep markdowns<\/a> to encourage customers to buy your products before time runs out. This is ideal for items that are going out of season soon or approaching the end of their lifecycle. <\/p>\n\n\n\n
Product bundling<\/a> is another effective method, as it allows you to get rid of excess inventory by bundling the surplus items with faster-moving items. You could take this approach with items that people are likely to need along with the fast-moving products. <\/p>\n\n\n\n
For instance, if you\u2019re trying to liquidate headphones, you could bundle them with your best-selling computer. <\/p>\n\n\n\n
Alternatively, you could bundle the same products to introduce bulk discount offers so that people buy more items at a time, allowing you to quickly get rid of excess stock. This is especially effective for products that people might want to buy in multiples, such as home supplies. <\/p>\n\n\n\n
\n
\u201cThe thing I love most about ShipBob\u2019s dashboard is the product bundling capability. I can\u2019t explain how many conversations we\u2019ve had internally trying to figure our bundling before we worked with ShipBob. You would not believe how hard it was to configure bundles so that the customer sees it as one unit, but it would get split into different picks when it got to the old 3PL\u2019s fulfilment centre. <\/em><\/p>\n\n\n\n
But with ShipBob, it\u2019s so simple. You log on to your dashboard, put whatever products you want in a bundle, and it\u2019s created as its own \u201cprimary item\u201d on Shopify with the composite products as sub-items. When an order comes through, it triggers the system and gets fulfilled seamlessly. It’s super easy \u2013 that alone would have been enough to make me want to switch to ShipBob!\u201d<\/em><\/p>\n\n\n\n
Stuart Jones, Co-Founder of Canvas<\/a> <\/p>\n<\/blockquote>\n\n\n\n
Online marketplaces and auction platforms <\/h3>\n\n\n\n
If you\u2019re not getting enough sales on your existing sales channels, you can make use of third-party platforms to leverage their existing customer base. Marketplaces<\/a> like Amazon and online auction platforms like eBay help you tap into a massive audience that\u2019s seeking great deals. Offer your goods at a lower price to appeal to potential buyers so you can quickly get rid of unwanted inventory. <\/p>\n\n\n\n
Direct sales to liquidators <\/h3>\n\n\n\n
Some companies specialize in liquidation, providing an effective way for businesses to get rid of excess inventory quickly and efficiently. These liquidation companies will buy your surplus stock in bulk, so you don\u2019t have to deal with the hassle of running and managing a sale. However, it\u2019s important to carefully vet the company you\u2019re working with to make sure that you\u2019re getting a reasonable deal. <\/p>\n\n\n\n
Bulk selling to retailers <\/h3>\n\n\n\n
Alternatively, there are retail businesses that will purchase your excess stock for resale. You may have to negotiate a deal and sell your inventory at a discounted price (since the retailers will have to make a profit), but decreased profit margins are still better than throwing the goods away (which delivers zero ROI). <\/p>\n\n\n\n
B2B liquidation channels <\/h3>\n\n\n\n
Some brands opt to liquidate inventory by selling excess goods to other businesses, which will typically use the products themselves. <\/p>\n\n\n\n
You can either find a business to sell to directly, or use B2B<\/a> liquidation channels and wholesale ecommerce<\/a> platforms that will connect you with bulk inventory buyers such as liquidators, retailers, and wholesalers such as Liquidation.com<\/a> and Overstock Trader.<\/a> <\/p>\n\n\n\n
Depending on the platform, you may either list your inventory for sale or host a liquidation auction to attract potential buyers. Either way, it is generally quicker and simpler to offload inventory via a B2B transaction than waiting for individual consumers to purchase individual units on your ecommerce platform<\/a>. <\/p>\n\n\n\n
Expert tips for liquidating ecommerce inventory <\/h2>\n\n\n\n
No matter which way you liquidate inventory, there are some best practices that help make it easier. Here are some strategies for simplifying and optimising the inventory liquidation process. <\/p>\n\n\n\n
Time your liquidation efforts <\/h3>\n\n\n\n
Timing is the key to successful inventory liquidation. If there\u2019s simply no demand for your product, it won\u2019t matter that you\u2019re selling it at a deep discount \u2013 you may still end up with unsold and devalued inventory, making it even harder to generate profits from them. So be strategic about when you\u2019re holding a liquidation sale, so it doesn\u2019t clash with changing market trends and consumer behaviour.<\/a> <\/p>\n\n\n\n
Timing your liquidation efforts requires accurate demand forecasting,<\/a> as accurate forecasting enables you to offload inventory before demand dries up completely. Look for patterns in customer interest and seasonal trends so you can see when demand starts to decline, and run discounts or sales before then. <\/p>\n\n\n\n
For instance, say your brand sells winter clothing. Since demand for winter clothing starts to decline as the weather warms up, you may want to start offering discounts on winter clothes before winter is over. That way, you can at least start to liquidate inventory while there\u2019s still interest in it. <\/p>\n\n\n\n
Plan marketing and promotion ahead of time <\/h3>\n\n\n\n
Simply running an attractive sale on your website may not be enough. You will also need to raise awareness about the sale and pitch it to the right shoppers so that you can attract and convert more customers. <\/p>\n\n\n\n
Invest in various marketing strategies and ecommerce promotions<\/a> to spread the word about your liquidation sale. Notify your email subscribers, create enticing social media posts, and retarget existing customers with strategic ads on social media platforms. Make sure your customers know when the sale is taking place and what types of products they can expect to buy at a discount. This will build anticipation for the sale to go live, preparing your customers to make a purchase long before the discounts are available. <\/p>\n\n\n\n
Planning your promotional efforts ahead of time will help you ensure that your liquidation strategy immediately has an impact as soon as it goes live. This will also help speed up the liquidation process, allowing you to save on storage costs and improve cash flow as quickly as possible. <\/p>\n\n\n\n
Monitor and apply findings to future liquidations <\/h3>\n\n\n\n
The most effective way to manage your inventory liquidation is by reducing the need for liquidation in the first place. <\/p>\n\n\n\n
Monitor how your existing liquidation strategy is working so you can adjust your inventory management<\/a> and plan your procurement more strategically to avoid overstocking altogether. Performing regular inventory audits<\/a> will also help you identify inventory buildup and address them before it goes out of control. <\/p>\n\n\n\n
Additionally, the insights gained from analising your current efforts will help improve any future liquidations. Perhaps you discovered that selling your inventory in bulk to another business was more effective than running a flash sale on your DTC website. In this case, you might want to focus only on B2B channels for your future liquidations. <\/p>\n\n\n\n
How ShipBob turns inventory management into an asset <\/h2>\n\n\n\n
Ideally, your business won\u2019t have to resort to liquidation. The goal is to always have enough of the right inventory on hand to meet demand \u2013 and to achieve that balance, you\u2019ll need effective inventory management. <\/p>\n\n\n\n
That\u2019s where a supply chain partner like ShipBob can help. With the right combination of technology, best practices, and expertise, ShipBob\u2019s solutions make it easier for brands to manage their inventory and avoid liquidation scenarios. <\/p>\n\n\n\n
Industry-leading inventory analytics <\/h3>\n\n\n\n
ShipBob\u2019s inventory management software provides you with the real-time insights you need to optimise your inventory levels, minimise costs, and stay stocked. Through ShipBob\u2019s dashboard, you can: <\/p>\n\n\n\n
- \n
- View and track real-time inventory levels<\/a> across channels and locations, so that you always know exactly how much inventory you have on-hand<\/a>\u00a0<\/li>\n\n\n\n
- Assess SKU velocity and inventory turnover<\/a> to identify fast- and slow-moving products, and pinpoint which products to reorder (to avoid overstocking products that won\u2019t sell)\u00a0\u00a0<\/li>\n\n\n\n
- Monitor storage cost per unit to quickly identify when liquidation is needed\u00a0<\/li>\n<\/ul>\n\n\n
\n<\/figure>\n<\/div>\n\n\n<\/figure>\n<\/div>\n\n\n<\/figure>\n<\/div>\n\n\n\n
\u201cI can’t say enough about ShipBob\u2019s software and reporting capabilities. It really has made things easy for us to look at the data and make better decisions. Not all partners are set up that way \u2013 oftentimes when you\u2019re using other providers\u2019 technology, you have to pull the data yourself, and there’s a lot of work to be done on the back end. I often brag about ShipBob\u2019s software. We’ve actually shown it off to other software partners to say, \u2018We want your system to tell us the things that ShipBob\u2019s software tells us.\u2019 You can tell that ShipBob\u2019s platform was built with the mindset of making their customers\u2019 lives easier.\u201d<\/em><\/p>\n\n\n\n
Ryan Steffenson, Senior Manager, Channel Operations at Tonies<\/a> <\/p>\n<\/blockquote>\n\n\n\n
Demand forecasting data and tools <\/h3>\n\n\n\n
ShipBob also offers merchants the data and analytics they need to improve their demand forecasting, and subsequently avoid liquidation scenarios. <\/p>\n\n\n\n
Using real order data tracked over time in ShipBob\u2019s dashboard, you can easily identify trends, patterns, and other insights into demand, and plan your procurement accordingly. That way, you know exactly how much of which SKU to reorder to ensure that you have enough inventory to meet demand, but not so much that you\u2019ll end up with ghost inventory<\/a> or deadstock you need to liquidate. <\/p>\n\n\n\n
You can even set up automatic reorder notifications<\/a> in ShipBob\u2019s dashboard, and receive a notification whenever a SKU\u2019s stock level hits a certain threshold. This enables you to time replenishment correctly, so you neither stock out nor overstock your inventory. \u00a0<\/p>\n\n\n\n
Distributed inventory across a global network <\/h3>\n\n\n\n
With dozens of fulfilment centres across the US, UK, mainland Europe, Australia, and Canada, ShipBob enables you to place your inventory in or near the locations where that inventory is in highest demand<\/a>. This way, you can send inventory to the regions or areas where there\u2019s a market for it and avoid resorting to liquidation. <\/p>\n\n\n\n
ShipBob\u2019s ideal Inventory Distribution Tool<\/a> even calculates the most optimal split of inventory across ShipBob\u2019s network which will minimise your shipping costs and times to deliver a better customer experience, no matter where your shoppers live. \u00a0<\/p>\n\n\n
\n<\/figure>\n<\/div>\n\n\nSimplified outsourced fulfilment and shipping <\/h3>\n\n\n\n
Whether you sell inventory or liquidate it, you\u2019ll need a strategy for getting inventory where it needs to go. ShipBob\u2019s outsourced fulfilment solutions help you manage the logistics of storing, fulfilling, and shipping out your products so you can keep inventory moving through your supply chain. <\/p>\n\n\n\n
ShipBob takes care of the entire order fulfilment<\/a> process, so you don\u2019t have to lease warehouse space, receive and stow inventory, or pick, pack, and ship orders yourself. Even if there\u2019s a sudden spike in sales due to liquidation, ShipBob can flex with your order volume and still fulfil your orders quickly and seamlessly. <\/p>\n\n\n\n
\n
\u201cWe’ve scaled so much, and there have been zero hiccups in fulfilment with ShipBob. I don’t think even as we keep scaling in the years to come that there will be any hiccups there. That cannot always be said of brands that run their own warehouse. Running your own warehouse, you have to go out and hire very experienced people, invest in equipment, build in automation \u2013 and often, you’re wasting a lot of time, energy, resources, and human capital for a sub-par result. Why do that when a partner like ShipBob exists, and makes fulfilment so easy at a fair price?\u201d<\/em><\/p>\n\n\n\n
Tyler McCann, Co-Founder of Taste Salud<\/a> <\/p>\n<\/blockquote>\n\n\n\n
Effective returns handling <\/h3>\n\n\n\n
ShipBob can manage your customer returns<\/a>, including those for liquidated items, while minimising complications and costs. You can set return preferences for liquidated products so that they\u2019re quarantined or discarded appropriately instead of being put back on the shelves. That way, you won\u2019t have to deal with the hassle of liquidating them all over again.\u00a0<\/p>\n\n\n\n
For more information on how ShipBob can help you manage inventory and avoid inventory liquidation, click the button below to get in touch with an expert. <\/p>\n\n\n\n
\nSpeak to a fulfilment expert<\/a><\/div>\n<\/div>\n\n\n\nLiquidating inventory FAQs <\/h2>\n\n\n\n
Below are answers to the most commonly asked questions about liquidating inventory. <\/p>\n\n\n\n
When is it advised to liquidate inventory?\u00a0<\/h4>
<\/div><\/div>\n\nIt\u2019s advisable to liquidate inventory when you have excess stock of inventory that\u2019s no longer in demand or approaching the end of its shelf life. Seasonal changes in demand and financial issues are other justifiable reasons for liquidating inventory.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n
How can ShipBob help with inventory liquidation?\u00a0<\/h4>
<\/div><\/div>\n\nShipBob provides real-time inventory visibility and comprehensive inventory analytics to help you plan your procurement to avoid overstocking and minimise the need for liquidation. Additionally, ShipBob\u2019s outsourced fulfilment service helps you simplify the logistics of moving your liquidated inventory out of the warehouse.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n
What are the best channels for liquidating excess or obsolete inventory?\u00a0<\/h4>
<\/div><\/div>\n\nSome of the best channels for liquidating excess or obsolete inventory<\/a> include your ecommerce website (though heavy discounts and sales), retail channels (i.e., selling inventory to retailers, who them sell them through their network), or B2B channels (either directly to another business or through third-party platforms such as\u00a0Liquidation.com<\/a> and Overstock Trader)<\/a>.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n
Can inventory liquidation increase profitability for an ecommerce business?\u00a0<\/h4>
<\/div><\/div>\n\nLiquidation can increase profitability by freeing up capital to re-invest in newer, more in-demand products and clearing up valuable storage space to store the inventory.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"
Learn what inventory liquidation is, some common liquidation strategies, and best practices for liquidating your ecommerce inventory.<\/p>\n","protected":false},"author":194,"featured_media":15918,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[8],"class_list":["post-15916","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-inventory"],"yoast_head":"\n
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- Assess SKU velocity and inventory turnover<\/a> to identify fast- and slow-moving products, and pinpoint which products to reorder (to avoid overstocking products that won\u2019t sell)\u00a0\u00a0<\/li>\n\n\n\n
- View and track real-time inventory levels<\/a> across channels and locations, so that you always know exactly how much inventory you have on-hand<\/a>\u00a0<\/li>\n\n\n\n
- Inventory obsoletion<\/strong>, in which a product expires or becomes obsolete before it can be sold <\/li>\n<\/ul>\n\n\n\n
- Inaccurate inventory data<\/strong>, which leads a business to believe they have less of a product than they actually do <\/li>\n<\/ul>\n\n\n\n